Kinsale Operating Earnings Rise to $5.70 a Share Despite 4.8% Premium Decline
Key Facts
Kinsale Capital Group said on October 22 that operating net income was $128.3 million, or $5.70 per diluted share, in the third quarter of 2026, compared with $121.2 million and $5.21 a share a year earlier. Operating earnings per share topped analysts’ estimate of $5.11, according to Investing.com coverage. By contrast, net income under accounting standards fell to $98.1 million, or $4.36 a share, from $141.6 million and $6.09 a share in the third quarter of 2025. The company attributed the difference to a realized loss from repositioning its investment portfolio. The results showed a divergence between operating earnings growth and competitive pressure on its insurance business, particularly in property lines.
Gross written premiums fell 4.8% to $462.9 million from $486.3 million in the comparable quarter of 2025, according to the company’s statement. Kinsale said the decline was primarily driven by intensifying competition in property lines, where premiums fell 19.3%. The drop was steeper in commercial property, where premiums declined 26.8% during the quarter. On the other hand, casualty premiums rose 0.9%, partially easing pressure from the decline in property. In the first nine months of 2026, gross written premiums fell 3.5% to $1.4725 billion, compared with $1.5260 billion in the same period a year earlier.
On an earned-premium basis, the company recorded a different trend: net premiums earned rose 3.0% to $423.5 million in the third quarter. These premiums had increased 8.9% to $417.6 million in the second quarter of 2026, while gross written premiums in that quarter fell 5.0% to $527.6 million. Underwriting income was $107.1 million in the third quarter, compared with $105.7 million a year earlier. The combined ratio was 75.4%, compared with 74.9% in the third quarter of 2025. Chief Executive Michael Kehoe said the underwriting results “show discipline in a competitive market.”
Net investment income rose 17.5% to $58.3 million, compared with $49.6 million in the third quarter of 2025. Kinsale said the increase came from growth in its investment portfolio, driven largely by investment of strong operating cash flows. Cash and invested assets totaled $5.5 billion on September 30, 2026, up from $5.2 billion on December 31, 2025. But repositioning the portfolio involved selling fixed-income securities and resulted in a realized pretax loss of $37.6 million for the quarter. The company said the move is intended to improve long-term returns and did not affect book value.
Operating earnings growth extended through the January-to-September period, reaching $372.3 million, or $16.34 per diluted share, compared with $319.0 million and $13.70 a share in the first nine months of 2025. GAAP net income for the period rose to $386.6 million, or $16.97 a share, from $365.0 million and $15.67 a share a year earlier. The comparison shows that the year-over-year decline in GAAP net income was limited to the third quarter, while the nine-month total remained above the year-earlier period. For 2025, the company reported that gross written premiums grew 5.7% to $2.0 billion, with a combined ratio of 75.9% and return on equity of 29.3%.
Kinsale shares fell 7% in extended trading after results were announced, despite operating earnings per share topping analysts’ estimate, according to Investing.com. The coverage linked the share move to the announcement that Chief Financial Officer Brian Petrucelli will retire from his executive role on March 2, 2027. The company said Petrucelli will join the board of directors effective October 22, 2026. Christopher Tangard will succeed him as chief financial officer upon his retirement, according to the coverage. Kinsale also announced the repurchase of 269,004 shares at a total cost of $100.0 million during the third quarter.
Kinsale had scheduled a call to discuss its results for October 23, 2026, at 9:00 a.m. Eastern time, with public access by phone and online. In the insurance sector, Universal Insurance reported adjusted diluted earnings of $1.36 a share in the third quarter of 2025. Its direct written premiums were $592.8 million, up 3.2% from the same period a year earlier, according to its results announcement published via Nasdaq. These figures provide a separate historical comparison with Kinsale’s current results, as they concern a different company and period. Universal’s public announcement did not include a confirmed date for its 2026 results call.